Why do realtors consider Wholesaling illegal or unethical?

[Rob Pene]

I was talking to a realtor who has cash buyer clients and he was telling me how wholesaling isn't an officially recognized real estate practice in the "real estate" industry.

It could be considered an illegal practice because it's doing real estate without a license.

Can someone help me understand this?

[Brian P.]

I have read a lot of stupid and uninformed anwers here but that is to be expected. First of all no one is saying everything is illegal as far as a seasoned licensed agent is concerned. Now the big but, laws for licensing were passed to protect the public and many times investors cross the line into licensed activity and as far as I'm concerned if you get nailed good.

I was an investor for ten years before I got a license so my first love is investing and being a broker was intended to aid my investing. But lines get crossed by investors. For example if you find a buyer first and tell them you will find them a property
you are acting as a agent, you are not a principle in any deal at this point, you are no different then a agent trying to locate a property for a buyer. Plus it can go even further if the buyer thinks you are acting in a agency capacity for them. It doesn't matter what you think, it only matters what the buyer thinks and it is called implied agency. The only reason you don't hear more about this is because the average person has no clue, but when that person seeks a lawyer for some reason you won't like the consequences. There are other lines we cross but I will stop here.